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Maybe you want to expand your bathroom for more storage, update an old kitchen, finish your basement, or all of the above. These are all ambitious, yet achievable goals—as long as you have the money to get them done. So how do homeowners finance these kinds of home remodeling projects? There are traditional methods, like getting a loan from the bank, and not-so-traditional methods, all of which you can learn more about below.

3 Options for Financing a Home Remodeling Project

1. Home Equity Loan

A home equity loan or line of credit is the most popular and traditional financing option, particularly for major renovations. It typically comes with lower fixed interest rates than other options and more flexible repayment terms. With a line of credit, it can be paid off and then used again to pay for additional home improvements or other major expenses.

2. Home Remodeling Programs

home remodelingBefore you take out a home equity loan, do some research to see if your county offers any financial assistance for home remodeling. These programs are often implemented to boost or preserve local home values. Although there are a lot of restrictions on what home improvements can be made, these loans offer the benefit of being low or no-interest, which can save homeowners thousands of dollars.

3. Cash & Credit Cards

For smaller projects like minor bathroom remodeling, consider using cash or a credit card. With cash, you can get the project started immediately because you don’t have to wait for a loan approval and closing. With a credit card, you may be able to take advantage of low or zero-interest periods and even earn rewards points along the way. Unless you have a lot of cash on hand or high-limit credit cards, these options are best left for minor home improvement projects so you don’t deplete your savings or get stuck with high-interest payments.

 

Once you’ve secured financing, you need to find a home remodeling contractor to complete your project. Residents throughout Northampton, PA, have relied on Reliable Restorations for all their kitchen, bathroom, and basement remodeling needs for more than 20 years. In addition to indoor renovations, these contractors also perform outdoor remodeling like deck installations and offer emergency restorations following storm or wind damage. Visit them online to review some of their past work, and call (610) 972-2506 to speak with a contractor about your project.

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